This archive report was first published on 22 October 2019.
On October 22, 2019, a Kenyan court dealt a blow to South Korean firm Yooshin Engineering, a lead consultant on the Lamu Port project, after dismissing its objection to a case filed by local consultant AIA Architects.
Yooshin Engineering, which is responsible for the design, review, supervision, and construction of the first three berths of the Lamu Port, had issued a notice of termination of its sub consultancy agreement with AIA Architects, prompting the latter to seek legal recourse.
Justice Patrick Otieno of the Kenyan court ruled that Yooshin Engineering's preliminary objection was filed outside the statutory time frame for arbitration, effectively forfeiting its right to insist on arbitration or a stay of the court's jurisdiction.
According to Justice Otieno, 'The defendant was thus deemed to have forfeited the right to insist on reference to arbitration, stay or lack of court's jurisdiction to entertain the matter and have it referred to arbitration.'
The court also issued an order suspending the date of effect of the notice of termination issued by Yooshin Engineering to AIA Architects, directing the local firm to continue working on the project as per the terms of the contract and to hold onto the soft copies of designs for the buildings and associated infrastructure.
